Canada's sales tax system is one of the most complex in the world. Depending on where you live, you might pay GST only, GST + PST, HST, or GST + QST. Each system works differently, applies to different things, and is administered differently. Here's your complete guide.
HST combines the federal 5% GST with a provincial component into one single tax collected by the CRA. Ontario (13%), Nova Scotia (15%), New Brunswick (15%), PEI (15%), and Newfoundland (15%) use HST. Businesses registered for HST collect one tax and remit it to the CRA.
British Columbia, Manitoba, and Saskatchewan charge the federal 5% GST separately from their own provincial sales taxes. In BC: 5% GST + 7% PST = 12%. In Manitoba: 5% GST + 7% RST = 12%. In Saskatchewan: 5% GST + 6% PST = 11%. Businesses register separately for GST and PST, collect both, and remit to different governments.
Alberta is the only province with no provincial sales tax. Only the federal 5% GST applies.
Quebec administers the GST on behalf of the federal government and charges its own QST of 9.975%. The combined rate is approximately 14.975%. Quebec's QST is similar to HST in structure but administered by Revenu Québec rather than the CRA.
| Province | Federal GST | Provincial Tax | Total Rate | System |
|---|---|---|---|---|
| Alberta | 5% | 0% | 5% | GST only |
| British Columbia | 5% | 7% PST | 12% | GST + PST |
| Manitoba | 5% | 7% RST | 12% | GST + RST |
| Saskatchewan | 5% | 6% PST | 11% | GST + PST |
| Ontario | 5% | 8% (HST component) | 13% | HST |
| Quebec | 5% | 9.975% QST | ~14.975% | GST + QST |
| New Brunswick | 5% | 10% (HST component) | 15% | HST |
| Nova Scotia | 5% | 10% (HST component) | 15% | HST |
| PEI | 5% | 10% (HST component) | 15% | HST |
| Newfoundland | 5% | 10% (HST component) | 15% | HST |
Certain goods and services are exempt from GST/HST across Canada:
Provincial exemptions vary. BC's PST, for example, does not apply to services (unlike HST). Manitoba's RST applies to restaurant meals but not BC PST. Quebec's QST is broadly similar to HST in its application.
Businesses registered for GST/HST can claim Input Tax Credits (ITCs) to recover the GST/HST they paid on business purchases. This means sales taxes are effectively not a cost to most businesses — they're paid by the final consumer. This is a key design feature that distinguishes GST/HST from cascading sales taxes that applied prior to 1991.
Unlike HST, provincial PST in BC, Saskatchewan, and Manitoba may apply to some business inputs and cannot always be recovered. This is a structural difference that increases costs for businesses operating in PST provinces compared to HST provinces.
Canada introduced the federal GST in 1991, replacing the hidden Manufacturers' Sales Tax. Several provinces subsequently harmonized their provincial sales taxes with the GST to create the HST, simplifying tax collection. BC harmonized in 2010 but reversed course after a 2011 referendum, returning to separate GST + PST in 2013. Ontario joined the HST in 2010. The remaining holdouts (BC, Manitoba, Saskatchewan, Alberta) maintain separate systems.
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